Daimler Sells Shares of Tata Motors

Daimler today sold all of its 5.34% of the ordinary shares of Indian automotive company Tata Motors to various groups of investors through the capital market, the company stated. The carmaker will receive a cash inflow of 300 million euros following this sale, which will also bring approximately 265 million euro to Daimler's EBIT, to be accounted for in the first quarter of 2010.

Daimler also made clear the move was done in full consultation with Tata Motors, and the relations between the two companies remain unaffected.

“Despite the global financial crisis, the Indian economy is clearly booming, accompanied by dynamic social developments and a corresponding need to catch up for the country's automotive industry. Daimler is participating in these growth opportunities by strengthening its own activities in both, the car and commercial vehicle sectors,” a company statement reads.

Mercedes-Benz India two production plants for Mercedes-Benz cars and commercial vehicles in Pune, the brand being represented with showrooms and service centers in 25 cities. In the first two months of 2010, Mercedes-Benz almost doubled its sales to a total of 800 vehicles. The carmaker expects a positive growth this year with the launch of the new E-Klasse on the local market.

On the other hand, Daimler Trucks also sees India as one of the key markets of the future. Daimler India Commercial Vehicles (DICV) took over the marketing of Fuso branded commercial vehicles in India at the beginning of 2010. The first Fuso vehicle was sold to an Indian customer in January 2010.

DICV is building a new plant in Chennai in the southeast of India. Starting in 2012, the new plant will initially produce light, medium and heavy-duty commercial vehicles for the Indian volume market under a new brand name.